Pan Pacific Hanoi

Nepal’s Nawalparasi district draws Cement production investments

Posted on : 02 Oct, 2017

Nawalparasi, is a district in Nepal is attracting a lot of investments from cement manufacturers from China, India and Africa. Already it is home to 5 cement factories running on high capacities.

Some of the key cement factories on the district are CG Cement, Sarvottan Cement, Palpa Cement. Last year, Hongshi Shivam Cement of Nawalparasi produced 6,000 tonnes of cement daily during winter. It aims to double its output within two years with infrastructure improvements. Hongshi Shivam is expected to receive investments from Chinese and Nepali investors worth Rs. 36 billion.

Other cement producers from the district also have expansion plans – Hiranganj Cement plans to expand its capacity from 1,200 tonnes per day to 1,800 tonnes per day, CG Cement to double capacity from 1,200 tonnes per day to 2,400 tonnes while Palpa Cement aims to produce 2,000 tonnes of cement daily.

Nawalparasi is also slated to gain from investments from India’s Reliance, Nigeria’s Dangote and China’s Houchin Construction – all three have already begun purchasing land in the district to build cement factories.

There are quite a few reasons why Nawalparasi is favoured by cement producers. Firstly, Nawalparasi shares border with Palpa – that contains the largest limestone mine in Nepal. Most of the cement factories in Nawalparasi are a mere 30-35 kilometres away from Palpa – which makes procuring their primary raw material easy and quick. Secondly, Nawalparasi is also close to the Indian border enabling raw materials imports further easy and cost-effective. A third factor that make this Nepalese district a hub of cement factories is the fact that the price of land is much affordable compared to other areas like Rupandehi, Chitwan or Makwanpur. Plus, land is also in abundance.

Additionally, there are fewer problems with locals as the factories are located much outside the residential quarters. Plus, these factories use modern technology that reduces noise and air pollution, which helps secure local support.

Find out more at CMT’s 19th Asia CemenTrade Summit on 24-25 October, 2017 in Hanoi.